Chrysler to Cut Models & Dealers

Chrysler LLC, undergoing a rapid realignment, is making plans to cut the number of models it sells by perhaps half as it also moves aggressively to slim down its dealer network, according to people briefed on the plans.

The Auburn Hills automaker has been working under its so-called Project Alpha to get
Dealers familiar with the new plan say they've not yet been told which models will be eliminated, nor have they been given a definite number.
Chrysler President Jim Press is slated to speak to Chrysler dealers in San Francisco this weekend during the National Automobile Dealers Association's annual meeting.
A Chrysler spokeswoman would not comment on the reports to the Free Press late Thursday.


Since Cerberus took control in August, Chrysler, as the first major U.S. automaker to be privately held in more than 50 years, has moved quickly. In November, Chrysler CEO Bob Nardelli announced the elimination of as many as 12,000 jobs on top of 13,000 already planned. At the time, he also cut four models, including the Chrysler Crossfire and Dodge Magnum.

As Project Genesis evolves, Chrysler said it will work with its dealers on options to create customer-driven alternatives that align the dealer network with the product portfolio.
To help speed up consolidation, Chrysler is working through its regional business centers to help put together deals to sell or buy franchises, according to people familiar with the actions.
One dealer, who attended the meeting, said Chrysler actively is soliciting ideas from dealers on what they want to do and suggested that Cerberus would be involved in ways, such as providing experts on finance, real estate and, possibly loans, to help accelerate the process.
When Cerberus first acquired Chrysler from DaimlerChrysler AG, some dealers speculated that the private-equity firm planned to spend big money to help consolidate quicker. Chrysler, which was on track to lose $1.6 billion last year, seems to be watching its cash flow very closely.